Arlington hostel in Camden, a safe place for homeless people to get back into work and move on to better living.
Photograph: Frank Baron/The Guardian

In an attempt to flee an abusive marriage, Emma* ended up homeless for over six months. The light at the end of the tunnel came in the shape of a housing association hostel for the homeless. There, she was able to rebuild her life with dignity and reconnect with her community thanks to supported housing services.

Emma’s story is important as ministers this week defended their proposed changes to the way that supported and sheltered housing is funded in an evidence session. These proposals have caused tremendous uncertainty for housing associations, which the National Housing Federation represents, as well as tenants.

Boards have had to make difficult decisions and some developments have ground to a halt, which could have disastrous consequences. Demand already exceeds the number of places available in supported housing and recent research shows that, unless plugged, the supply gap will cost the taxpayer an estimated £2.72bn over the next five years.

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Supported housing helps hundreds of thousands of vulnerable people in England – from the elderly, homeless and victims of domestic violence to those living with disabilities, mental ill-health or addiction issues. It is that key link for those who need it between hospital and independence, helping them get back on their feet.

During a visit last week to One Housing’s Arlington hostel, MPs from the communities and local government and work and pensions select committees joint inquiry witnessed this. They met residents who explained how the hostel had been a safe place, where they received personalised support and opportunities to learn skills, find a job and regain their independence.

But this model is now under threat: residents like Emma are facing significant cuts to the level of housing benefits they receive. Many Arlington customers will struggle to make ends meet and could be £148 short a week.

While local authorities will have a pot to top up shortfalls, there are still a huge number of questions about how the top-up will work, how long it will be available for and whether there’ll be enough of it in each local authority area. This leaves residents and housing associations with little certainty about their future income.

Those in low-value areas will get the short end of the stick. Residents will be entitled to less than their counterparts in higher value areas. Disadvantaged individuals in disadvantaged areas will bear the brunt.

We are instead calling for a “supported housing allowance”, which would better reflect the costs of supported housing and provide greater certainty for those working in and benefiting from those services. Without this, we run the risk of losing services that offer people a vital lifeline.

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This goes beyond supported housing. The NHS is struggling to keep its head above water. Our population is ageing, adding pressure to our care services. Homelessness has spiked.

Housing associations are playing an important role in providing vital care and support, but they need certainty and a system that works for vulnerable people. We have engaged positively with government during an extensive consultation period. But more needs to be done and the sector is ready to have these important discussions.

Government cannot and should not ignore the knock-on effects that these proposed changes will have.

* Names have been changed

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